Respuesta :
A bond will sell at a premium when the stated rate of interest exceeds the required rate of return, at a discount when the stated rate of interest is less than the required return, and equal to the par value when the stated rate of interest is equal to the required return.
Explanation:
Premium and discount applies to the value of a bond which can also represent the disparity between a benefit and a loss on an individual's investment. A bond with a cost below 100 is a discount bond and a cost over 100 is a premium bond. Bond prices are moving in the opposite direction of interest rates: bond prices decline as interest rates increase and vice versa. Typically, when a bond is reduced their price decreases. Discounts typically represent an atmosphere of high interest rates or poor quality bonds; premiums imply low interest rates.
